Investment Strategies

Commercial Real Estate Lending Commercial Real Estate Lending


Strategy overview:

Our commercial real estate lending strategy originates-to-hold first lien mortgages on transitional properties 

  • Vertically-integrated platform driven by a regimented credit process, quantitative modeling of individual loans and the firsthand involvement of our team throughout deals to help inform investment decisions
  • Seasoned investment team with deep experience sourcing, underwriting, closing and asset managing loans with similar credit profile throughout different market cycles
  • Proprietary data and analytics1 provide differentiated insights and modeling of comprehensive scenario-based analytical analysis to inform underwriting, loan structuring and pricing

 

Financing Capabilities

Loan Size $10 to $75 million collateralized by institutional quality CRE assets
Loan Type Floating rate, senior loans on middle market property acquisitions and refinances backed by value-add investment strategy
Asset Types

Primary sectors: Office, retail, multifamily, industrial, mixed-use and hotel properties

Other potential sectors: self-storage, student housing, and single family rental portfolios.

Geography Markets across the United States
Loan Term Estimated: 2 to 5 years
Loan To Value/Loan To Cost Up to 75% LTV/LTC
Debt Service Coverage Ratio Requirements Existing DSCRs below 1.0x are acceptable
Loan Fees Typically 1 to 1.5%
Recourse Typically non-recourse

Commercial Real Estate Lending

  • Transitional Lending - The Sweet Spot in CRE Investing

    White Paper - March 2017
    This paper examines the risk-reward associated with investing in stabilized/non-stabilized CRE, and argues that low leverage loans backed by transitional properties are the sweet spot for CRE investing in the current environment.

    Click Here to Download

1 - Provided through Amherst InsightLabs (“AIL”).  Amherst Capital has an exclusive license with AIL in the asset management industry. AIL is an affiliate of Amherst Holdings, LLC.

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